Managing Expectations Around Heat Pump Retrofits - Educate your customers about comfort and efficient operations.

As a result of the electrification trend, more homeowners are choosing to replace their gas furnaces with heat pumps. However, this type of retrofit can be complex and expensive, as discussed in the first part of this article (our May 15 cover story). For example, proper sizing, electrical upgrades, and reliable backup heat are all critical factors that must be taken into account in order to ensure a successful outcome for the customer.

This second part of the article will explore the energy efficiency, payback, and comfort homeowners can anticipate when replacing their gas furnaces with heat pumps. Contractors should take the time to educate customers about the expected performance of their new heat pump in order to prevent any surprises or dissatisfaction with the systems after the installation is complete.

EFFICIENCY AND PAYBACK

Unlike gas furnaces, which burn fuel in order to create heat, heat pumps use electricity to transfer heat rather than generate it. This gives them mechanical leverage, resulting in higher efficiencies when compared to other heating systems, said Mark Reding, ducted systems product manager II at Johnson Controls.

“For example, a heat pump with a seasonal coefficient of performance of 3 will produce 3 Btu of heat for every Btu of electricity consumed on-site,” he said. “A 95% AFUE furnace, by comparison, will generate 0.95 Btu of heat for every Btu of natural gas consumed. The energy efficiency of the heat pump usually translates to lower utility bills and lower source emissions, but electricity rates, natural gas rates, and emissions from electricity will vary by location, so it is important to analyze each project to get an accurate picture of the benefits and costs.”

A homeowner’s location definitely matters, because while the energy efficiency of a heat pump may be three to four times higher than that of a furnace, in many parts of the country, electricity is often much more expensive than natural gas for the equivalent amount of energy, said Ben Lipscomb, P.E., director of engineering and utility programs at National Comfort Institute (NCI).

“So in many cases, the fuel cost difference negates the efficiency advantage, and a customer’s utility bill will remain about the same or even go up some,” he said. “In some areas with moderate climates and electricity prices, there are still bill savings to be had.”

That is why the payback for a new heat pump can be so variable — it depends on a lot of factors, including the climate and the relative prices of electricity and gas, said Lipscomb.

“In the best circumstances, a heat pump might pay for itself in 10 years or so. In the worst circumstances, the heat pump will cost more to operate and will never pay for itself,” he said. “However, the math is much more favorable for heat pumps if you compare them to a more expensive fuel, such as propane.”

The payback can also depend on the building construction and usage, as well as the efficiency of the equipment that is being installed versus what is being replaced, said Tim Brizendine, director of product management at Lennox.

“For example, replacing an 80% gas furnace that runs on propane with a high-efficiency heat pump in a cold climate with low electricity rates can have a very quick payback, while replacing a high-efficiency natural gas furnace with a standard efficiency heat pump in a milder climate with low natural gas costs and above-average electricity costs will net a poor payback,” he said.

COMFORT

While comfort can be subjective, it is important for homeowners to understand that furnaces generally produce warmer air than heat pumps, particularly in winter as outdoor temperatures decrease. That is why people may perceive a gas furnace as being more comfortable on a chilly winter day, even if the two different systems are conditioning the home to the exact same temperature, said Lipscomb.

From a comfort standpoint, gas furnaces generally provide warmer air than heat pumps, agreed Brizendine.

“However, newer heat pumps — particularly variable-speed heat pumps — can offer similar supply air temperatures to a furnace,” he continued. “Depending on the furnace that was installed, a heat pump can offer more consistent temperatures than a single-stage furnace that quickly cycles on and off and creates larger temperature swings.”

Some homeowners may not be aware of the supply temperature difference in winter, so they may perceive the heat pump as being less comfortable, said Reding.

“But ductwork design, discharge registers, and airflows will all influence how an occupant perceives comfort.”

Humidity control is also part of the comfort equation. Reding said that for homes in which an air conditioner is being replaced with a heat pump, dehumidification effects should be reasonably close, provided the indoor coil, airflows, and cooling capacity of the heat pump are similar in size and depth to the air conditioner it’s replacing.

“Further, using a heat pump with a staged or variable-speed compressor can improve humidity control,” said Reding. “The additional stages of capacity result in longer run times in cooling mode, which will result in properly controlled humidity levels.”

Most of the humidity control issues for heat pump replacements stem from poor sizing and selection choices, said Lipscomb. For example, in cooler climates, the heating load will be much higher than the cooling load.

However, if the heat pump is sized for the heating load, it will be oversized for cooling, so the unit will cycle on and off for very short amounts of time in cooling mode.

“This dramatically reduces the coil’s ability to get cold enough to condense water from the air,” said Lipscomb. “This is a scenario where a choice was made to size to the heating load, but more often than not, there is a tendency to use rules of thumb to size, which results in a lot of unintentional oversizing.”

Lipscomb said the best practices to avoid dehumidification problems are as follows:

• Always do a thorough Manual J load calculation. Look at cooling, heating, and dehumidification (latent) loads. Compare to equipment at the design points for cooling, heating, and dehumidification to determine if the homeowner’s needs can be met with a heat pump alone.
• If the heating load dramatically exceeds the cooling load, consider a dual fuel system that will switch over to gas furnace operation below a certain temperature. This way, the equipment can more closely match the cooling load, and dehumidification performance will be improved.
• If after properly calculating loads and assessing equipment it is determined that more dehumidification is needed, a standalone dehumidifier is always an option.

“Lastly, I should mention that this isn’t really an issue in dry climates,” said Lipscomb.

THE EDUCATION COMPONENT

While heat pumps can provide tremendous benefits for building occupants, it is important for contractors to educate homeowners about efficient operation and how they are different from furnaces, said Reding.

“In cold climates, contractors should calculate the portion of the heating load that will be served by the heat pump, and when backup heating will be required,” he said. “If the heat pump will not cover the bulk of the annual heating hours, homeowners should strongly consider a dual fuel heat pump to avoid reliance on electric resistance backup heating, which will result in a significant increase in electric utility costs. Many electric utilities have variable or time-of-use [TOU] rates that increase when demand on the grid is high; homeowners should be aware of their rate structures and avoid turning up their thermostats during these peak times, if possible.”

If replacing a gas furnace with a heat pump, Lipscomb believes the No. 1 consideration should be emergency heat. This is true even in climates that are considered warm, such as Texas and California, which have recently seen powerful winter storms.

“These storms can lead to power outages and leave people without heat,” said Lipscomb. “In a power outage, a gas furnace fan can be powered with a small portable generator. A very large and expensive generator would be needed to do the same with a heat pump. If it’s cold enough, no heat can be a major liability to a house or a homeowner’s life. It’s very tempting to go for 100% electrification, but people need to understand the real risks.”

As with any major purchase, Brizendine advises contractors to provide homeowners with options to help them choose the right equipment for their needs. This includes making sure they have thought through the initial and operating costs of their systems and that they understand any cost or comfort tradeoffs or benefits they may be getting with their options.

“Homeowners should consider both current and future energy cost possibilities, differences in operation, as well as sound tradeoffs for the system,” Brizendine said. “Newer heat pump systems offer much better performance and reliability than those from several decades ago during a similar push to [convert to] heat pumps, so homeowners and contractors alike should keep an open mind and do their research.”

Heat Pump Retrofit Receives Mixed Reviews

Last year, Massachusetts state Sen. William N. Brownsberger decided to replace his gas furnace with an electric heat pump, and in a recent post on his website, he admits that the results have definitely been mixed.

“We’ve been very comfortable, even on the coldest days,” said Brownsberger. “But now that we’ve been through a heating season, we can do an efficiency comparison for our heat pumps. The results are disappointing — so far, the pumps have been so inefficient that the climate would be better off if we had stayed on gas heat.”

He added that his conclusion does not reflect the additional fact that mid-winter, one of the two heat pumps in his home leaked 4 pounds of refrigerant.

“Between the inefficiency and the leak, the net climate effect of our heat pump conversion has so far been about the same as putting a typical car on the road for a year,” he said.

Brownsberger expressed surprise at the way in which the climate numbers worked out.

“Both the cost and the greenhouse gas impact of a heat pump conversion depend on how efficient the pump is in moving heat,” he said. “As it turned out, our heat pumps were only about 150% efficient, although they were rated 278% efficient. That means they needed more power to run and demanded more output from the gas-generating plants that add power to our grid.”

The senator did not fault the heat pump he bought or the installers, who he said were careful and professional.

“It may be, however, that we need better rules of thumb to predict how a heat pump will perform in a particular installation,” he said.

- article courtesy of ACHR News, Joanna Turpin May 29, 2023

Manatee County, EPDM Gasket Exemption

Manatee County is extending the exemption on the use of factory installed EPDM gasketed PVC pipe for pipe delivered and on-site until December 31, 2023. There has been a resin shortage that impacted the availability for PVC pipes with the EPDM gaskets. However, in discussion with suppliers and manufacturers, this market is improving, and it is not expected the exemption will continue in the future. Therefore, please start making the necessary adjustments for projects approved after December 31, 2023 to install with factory installed EPDM gasketed PVC pipe.

No deviation request by the Contractor or the Engineer of Record will be required during this period of exemption. A copy of this letter should be provided to the contractor and be on-site with the other approved documents that are required to on-site (i.e., approved construction plans). During the record drawing process, please indicate this deviation on each applicable sheet.

Please contact Scott May if you have questions.

Scott May, P.E., Manatee County Engineer
Deputy Director - Engineering Services
Public Works Departments
Engineering Services
1022 26th Ave East
Bradenton, FL. 34208
Phone: 941-708-7462

MANASOTA AIR CONDITIONING CONTRACTORS’ ASSOCIATION OFFERS ONE-YEAR ACCELERATED HVAC APPRENTICE PROGRAM

The Manasota Air Conditioning Contractors Association (MACCA) announces the launch of its new One-year HVAC Apprenticeship Program at Manatee Technical College. The goal of the program is to help HVAC businesses meet the demand for skilled labor by offering accelerated training. The program provides accelerated, competency-based training two nights a week (Tues./Thurs.) from 6:00-9:00 p.m. for 43 weeks with an on-the-job training component.

Competency-Based Training (CBT) is a learning model where students must demonstrate the required level of knowledge and skill on a task prior to advancing to the next task. CBT is broken down into small units that are focused on specific skills, helping apprentice students acquire skills and knowledge so they can perform a specified standard under certain conditions.

Participants gain experience and learn new skills required of the residential HVAC/R installation and service trade. Instruction is provided in the evening, while the apprentice is working in the HVAC field during the day. To meet on-the-job training requirements, supervision by a fully qualified journey worker is provided by the employer, who is responsible for making work assignments, providing on-the-job training, and ensuring safety at the worksite.

MACCA’s one-year program is approved by the Florida Department of Education as a registered apprenticeship program. Apprentices who successfully complete the program will receive the same state certification as our three-year program, in addition to OSHA-10 HR, EPA-608, NATE (Core and Air to Air Heat Pump) certifications.

Our three-year program at the Suncoast Technical College is still available for apprentices who may find it difficult to participate in training two nights a week. The three-year program classes are held one night a week from 5:00-9:00 p.m. for 36 weeks at both the Sarasota and North Port campuses.

For the trainee, an apprenticeship can offer the opportunity to create a career in a skilled trade, receive higher wages, and better employment outcomes. For the employer, apprenticeship programs are a reliable workforce solution to train and retain employees.

Employment by a sponsoring HVAC company is required to participate in the three-year and one-year programs to meet the on-the-job training requirements. If you are currently employed outside of the HVAC field or unemployed and are interested in a career in the HVAC Industry, we can help. Visit MACCA.us/Education/HVAC Apprenticeship.

About MACCA MACCA's mission statement is the guiding principle of the association: To better the quality and public image of the Heating, Ventilating, and Air Conditioning (HVAC) industry through the proper training of apprentices and to promote excellence, knowledge, and support within the HVAC industry. The association’s continuous focus on their training programs has helped to build highly skilled employees, reduce turnover costs, increase productivity, and create company loyalty.

Please visit: MACCA HVAC Apprenticeship for registration and details.

If you have any questions, please call the MACCA office at 941-404-3407.

If you have clients looking to install new heat pumps in 2023, be sure to inform them of tax credits that may be available to them through the Federal government. Mostly, these credits are an extension of those available in previous years — but many homeowners are unaware of them. Sharing this information with your client could make the difference between them purchasing a new heat pump through your HVAC business and waiting it out another year.

So, what do HVAC professionals need to know about heat pumps and tax incentives?

More About Tax Credits for Heat Pumps

Tax credits for specific energy-efficient heat pumps are available through the Inflation Reduction Act of 2022. This act offers Federal tax credits for heat pump models that are rated at the highest tier of efficiency according to the Consortium for Energy Efficiency.

This incentive comes in the form of a tax credit, so consumers who purchased an eligible heat pump during the given tax year can receive money back when they file their taxes or use the credit to offset taxes owed. The heat pump credit is specifically good for up to 30% of the total cost of the heat pump itself. This includes not just parts but installation and labor as well. The credit maxes out at $2,000 and, according to the Inflation Reduction Act, will be available to consumers through the end of 2032.

It is worth noting that eligibility for credits can vary based on the taxpayer’s income. For example, those with household incomes totaling more than 150% of the state’s median income are not eligible. However, anybody with household income less than 150% of their respective state’s median income is eligible for anywhere from 50% to 100% of the tax credits available.

Benefits of Tax Incentives for Efficient Heat Pumps

Overall, the purpose of offering tax credits and incentives to consumers buying high-efficiency heat pumps is to make them more accessible to a wider segment of buyers. With the average cost to install a new heat pump hovering around $5,500, it’s easy to see why affording a new heat pump can be challenging.

At the same time, the Department of Energy is working hard to reduce carbon emissions and boost overall energy efficiency throughout households in the United States. As it stands, residential heating and cooling are a major source of carbon emissions, accounting for 20% of all carbon emissions nationwide and producing roughly 441 million tons of carbon dioxide each year.

With this in mind, it makes sense that the Federal government needs to take steps to help consumers afford more energy-efficient HVAC equipment. These credits will make it more attainable for homeowners to install new heat pumps regardless of their income or economic status. 

Combine all this with the fact that newer, more efficient heat pump models can also save consumers money on their own energy bills. When monthly energy savings are combined with tax credits, the cost of installing a new heat pump can be offset over time. Ultimately, we’ll all reap the benefits of reduced carbon emissions and a healthier planet for generations to come.

Explore Heat Pump Options From CE

As you can see, there are some great tax credit options available to your residential clients who may be looking to purchase a new heat pump this year. If you have clients who have been on the fence, now is a great time to share this information with them so that they can make an informed decision about their household heating and cooling needs.

If you’re looking for an excellent heat pump to recommend to your clients, CE has you covered. We carry a wide range of heat pump systems, including energy-efficient condensing units with a SEER rating of up to 20. This includes our popular Carrier® Infinity™ variable speed heat pump model and our Bryant® Evolution® 3-ton variable speed model. If you have customers who don’t have existing ductwork systems installed in their homes, we even carry ductless heat pump options with up to 20 SEER.

All of these units offer the latest energy-saving technology while reducing carbon emissions, so your customers can feel good about their purchases while potentially being eligible for tax credits. As an HVAC professional, you’ll also find everything you need for an easy and proper installation at CE. From ductless controls and pad mounts/blocks to disconnects and everything in between, CE is the best place for the highest quality parts and equipment.

The Bottom Line on Heat Pumps and Tax Incentives

Now more than ever, we have an obligation to reduce carbon emissions and leave the planet a better and more sustainable place for future generations. High-efficiency residential heat pumps are a great way to do just that — and tax credits available through the Inflation Reduction Act make installing these heat pumps more attainable for hardworking Americans across the board.

The next time you have a client who is thinking about buying a new heat pump unit, be sure to share this information with them so they can make an informed decision. In the meantime, keep an eye on the CE News blog for the latest industry news and updates!

By Katie Conigliaro

www.carrierenterprise.com/hvac-new

INVITATION FOR BIDS (IFB) NO. 2023-B01- GCBX Membership

The Sarasota Housing Authority invites you to participate in the following Invitation For Bid (IFB) process: INVITATION FOR BID (IFB) NO.2023-B01 Bertha Mitchell HVAC, HWH, Electrical Panel Upgrades, Roofing, Exterior Doors, Bathrooms and Kitchen Cabinets Upgrades Our Agency is now conducting our competitive solicitations on an Internet-based system (as our Agency is paying all costs for the use of this system, there will not be any additional charges to your firm to use this system to download the IFB documents or submit a response to our Agency).  To take part in this process, please follow these instructions: DIRECTIONS TO ACCESS THE INTERNET SITE Access https://ha.internationaleprocurement.com/requests.html?company_id=30452 (no “www” necessary). Click on the link to “Login” or to register your company. On the following page, Type in the name of your company and see if it is already listed, if not click on Create a New One. Follow the listed directions. If you have any problems in accessing or registering on the system, please call customer support at (866) 526-9266. FYI, the above noted IFB is listed under the following "Main Service Category" within the ha.economicengine.com Internet system: "Construction, Maintenance, Support and Repair Services." For questions regarding the IFB, please submit via the e-procurement site. In Addition: There will be a pre-bid meeting on Tuesday, May 16, 2023 at 10:00 a.m. at 1912 N. Orange Ave., Sarasota, FL 34234 for companies interested in viewing the project site. Please complete the information below and return this page via e-mail to lclayton@sarasotahousing.org with a copy to akeddell@sarasotahousing.org.  We look forward to your timely reply. a)   Do you intend to follow the above directions and consider submitting a proposal?  YES___ NO___.  If “NO,” please explain following as to why: b)   Do you wish us to cease sending you these notices, which means we will remove you from our bidder's list?  YES___ NO___.

Most people measure whether they are winning at something by the amount of money they make. This definition of winning may be the reason most HVAC businesses steer clear of maintenance. Our industry views maintenance as a loss on the scorecard. But is it?

On the other hand, there are companies that, almost like ghosts, haunt the rest of the industry with successful maintenance programs that win for all parties involved. These ghosts, in effect, quietly take care of customers and keep them as raving fans. They find ways for their customers, their co-workers, and their businesses to win. Wouldn’t it be nice to spend some time with those ghosts and get an inside peek at what makes them winners?

DO CUSTOMERS WIN? In business, nothing matters if the customer doesn’t win. That is why successful maintenance programs place the customer first. All processes and procedures are there to serve the customer. In fact, great maintenance programs find processes and procedures that exceed customer expectations for years to come.
Consequently, if you were the customer, what elements of a maintenance program help you to win?

Some common winning features include:

• Pre-scheduled tune-up
• System performance evaluation
• Seamless monthly payment plan
• Visible system improvement
• Priority service
• Discounts on service and accessories
• Tidy work areas
• Respect for customer’s home and family
• Clean trucks parked in the appropriate place

DOES THE TEAM WIN? The HVAC industry faces a severe labor shortage. Not having a large enough labor force can cause a deterioration in the quality of work performed. Why? Because fewer techs try to squeeze in more calls and spend less time discovering the source of customer complaints. Therefore, quality is bound to suffer.

Also, a smaller workforce usually has a higher overtime percentage. In other words, overtime means technicians lose time with their families. This leads to things like burnout and bad attitudes. Will quality work suffer as a result? You bet.

So, your team members must have your respect and concern for the challenges this type of work causes. So to have a successful maintenance program, you must have successful co-workers. This means hiring people with the right attitude, then training them to provide top-shelf craftsmanship on every job.

Then there is the whole career thing. Providing HVAC careers and training for your team is so essential by today’s standards. When your team members know the progression of their careers and they know you reward quality work, they will work harder and help the entire company be successful.

Unfortunately, many within the HVAC Industry view maintenance work as ‘busy’ work. They view it in the same light as when a teacher gives the substitute busy work for the class to perform when the teacher is out.

They don’t place a high value on maintenance that our customers and co-workers can rally behind. If we treat maintenance tune-ups like an option, then maintenance will never be more than just busy work. Teams must understand the importance of regular maintenance, and owners must continually re-enforce its value.

So, contractors whose teams win with maintenance have found a way to value this work. In case you thought otherwise, this is not busy work. It becomes a pathway for the homeowner to know their system is operating safely, their home environment is healthy, and they are more comfortable. Maintenance assures customers their system is also operating efficiently.

• Features winning teams have in common include:
• Training programs that correspond to pay increases
• Performance bonuses for quality work
• Company provided uniforms
• Public praise/private reprimand.

CAN THE CONTRACTOR WIN? You already know the answer. You also know it is not easy to have a maintenance program that wins. For this reason, High-Performance Maintenance Contractors all measure, evaluate, change, and re-measure. As a result, a winning contractor must spend time training themselves. They must seek ways to improve their own performance even as they seek to improve their team’s performance.

Contractors who win can expect the following:

• Customers who are Raving Fans
• A successful, trustworthy team
• Steady, predictable work schedules
• A reputation for quality work
• Consistent income.

NCI CAN HELP WITH SUMMIT 2023 In each section of this article, I listed features a single High-Performance Contractor uses to Win-Win-Win. Can you imagine being in a room full of successful contractors all sharing their experiences?

You will have that opportunity at National Comfort Institute’s High-Performance HVAC Summit 2023. Come join us! You will hear experiences and share ideas with other High-Performance Contractors in each session. That is to say, there will be some ghosts haunting these sessions and I can’t wait to learn how to be a winner.

If you haven’t done so, sign yourself and your team up. Plan to join your peers from across the country in Branson, MO, from April 16-20

JIM BALL’S UPCOMING SUMMIT 2023 DISCUSSION
This article is based on an upcoming discussion moderated by Jim Ball at National Comfort Institute’s 2023 High-Performance HVAC Summit in Branson, MO. In its 20th year, this event focuses on the High-Performance HVAC Contracting segment of the industry and promises to be something you and your team should not miss.
You can learn about upcoming sessions, special events, registration savings for members, and more at gotosummit.com.

As an HVAC contractor, part of your job is not just installing and servicing HVAC equipment — it’s about being able to sell it, too. In fact, depending on where you work and your company’s compensation structure, you might even receive a commission or bonus when you make new equipment sales to your customers.

At the same time, closing those deals isn’t always easy. This is especially true when you’re trying to sell higher-end equipment, such as high-efficiency heat pumps, furnaces and air conditioning systems. Fortunately, you can follow a few tips and best practices to help high-end equipment practically sell itself.

Get Specific About Energy Savings

These days, it’s all about energy efficiency and energy savings. The most expensive and high-end HVAC equipment on the market also tends to be the most efficient — and you can use this to your advantage when selling in the field. This means focusing on the potential energy savings a customer will enjoy with a new and efficient unit as part of your pitch.

This can take some careful calculation on your part, but if you can actually provide your customers with a ballpark idea of how much they could save on their energy bills (whether it be each month or each year) by installing a high-end system, you’ll be much more likely to make the sale. That’s because offering a concrete figure helps customers rationalize a larger purchase, especially if they can see that the new unit may pay for itself over time.

Talk About Features

In addition to bragging about SEER ratings and energy-efficiency savings as part of your pitch, be sure to focus on the included features that make the equipment better than the less expensive options on the market. For example, maybe the system comes with advanced filtration technology that will help to improve indoor air quality (IAQ). Perhaps (as in the case of a ductless system) the condenser unit can be connected to multiple air handlers to allow for precise zone control throughout the home.

Don’t assume that your customers will be aware of these features without you telling them. Instead, take the time to explain the highlights that make higher-end equipment stand out from the rest. This could also include extended warranty coverage or higher quality parts less likely to need replacing over time.

Bundle Products or Services

Another strategy to consider when making more high-end equipment sales is bundling the equipment with other products and/or services. For instance, when a customer purchases a premium heat pump unit, you might throw in a few years of free tune-ups and inspections as part of the deal. This can be a great way to add perceived value to the purchase, especially if you explain how much money the customer would save by getting those tune-up sessions for free.

Bundling other products with a high-end purchase is another option, though this will depend on your inventory and business model. Some HVAC companies run promotions, for example, where they actually offer a free furnace with the purchase of a new AC system (or the other way around). While that may be a more extreme example, even throwing in some free air filters or other smaller equipment can make all the difference in your ability to make a sale.

Offer Plenty of Options

Make sure that you’re offering your customer plenty of options to choose from. If you have a few high-end options available, take the time to present at least three of these to your customer. Explain the differences between each option, not just in terms of price and features but energy efficiency and potential energy savings.

Presenting customers with options to choose from makes them more likely to make a sale. If you’re simply trying to push one high-end unit on them, they’re more likely to resist. Yes, it will take a little more time to break down a few options for your customer, but this will often pay off in the end.

Offer a Limited-Time Deal

Some HVAC professionals also have luck making sales by offering special deals or pricing that is only good for a limited amount of time. Typically, these deals expire at the end of the business day they are presented, but you can choose any frame of time that works for your company. Creating a sense of urgency to take advantage of a special discount can greatly increase sales, though it will cut a bit from your profits.

Start Making More Sales Today

These are just a few effective ways to start making more high-end equipment sales as an HVAC contractor. At the end of the day, it’s all about knowing your customers and catering to their most essential needs. By taking the time to explain features and energy-efficiency savings, and giving your customers plenty of options to choose from, you can boost your sales (and your commissions as a result).

- Information provided by Carrier Enterprise

March 29 Florida Senate passed SB 360 Causes of Actions Based on real Property Improvements off the Floor.  This as a reminder is the Construction defects bill sending it to the Governor for his signature.  The bill has not yet been presented to him, but we will let you know once that occurs. 

SB 360 amends existing law with respect to causes of action based on improvements to real property. The bill shortens the timeframes within which a property owner may bring a cause of action against a builder for alleged construction defects. It also narrows the scope of certain statutory civil actions against builders for Florida Building Code violations.

Specifically, the bill:

· Revises the commencement of the 4-year statute of limitations by changing the listed potential commencement dates and causing the statute to run based upon whichever date is earliest instead of latest;

· Shortens the 10-year statute of repose to 7 years;

· Revises the commencement of the 7-year (currently 10-year) statute of repose by changing the listed potential commencement dates and causing the statute to run based upon whichever date is earliest instead of latest;

· Provides that if a newly constructed single-dwelling residential building is used as a model home, the time to bring a construction defect action begins to run from the date that a deed is recorded first transferring title to another party;

· Provides that if a project involves the construction of multiple buildings, each individual building must be considered its own improvement for purposes of determining the limitations period in the bill;

· Provides a definition for “material violations” in connection with statutory civil actions against builders for alleged Florida Building Code violations, and amends existing law to limit recovery for material violations only; and

Includes a savings clause to ensure that claimants having time remaining under the existing statute of limitations have at least 1 year from the effective date of the bill to initiate a construction defect action.

Click here for the Staff Analysis

Click here for the final bill Text

After four years this bill finally made it to the finish line and we do expect the Governor to sign it into law.  Please let me know if you have any questions or need additional information. 

- Edward Briggs, Vice President of Government Relations & Community Affairs

Tort Reform in Florida

Earlier this month members of the Florida House of Representatives introduced a tort reform bill, H.B. 837. Since then, both the Florida House of Representatives and Florida Senate have passed the provisions. The bill was officially signed into law Friday, March 24, 2023 by Gov. Ron DeSantis and will become effective on or around July 1, 2023. This bill makes significant changes to the Florida Insurance landscape.

Key provisions in the bill:

• Repeals one-way attorney fee provisions. This could result in claimants owing the carrier's defense costs.
• Reduces the statute of limitations from four years to two years excluding medical malpractice claims.
• Changes Florida’s comparative negligence system from a “pure” comparative negligence system to a “modified” system so that a plaintiff who is more at-fault for their injuries may generally not recover damages.
• Eliminates fee multipliers, which have allowed plaintiffs’ attorneys to use a multiplier on top of a “Lodestar” fee thereby securing higher fees when they prevail in litigation.
• Policy limits equal damage limits. The claimants will be entitled to a prorated share, as determined by the court or arbitrator in the case.
• No more attorney-client privilege on treating physicians for plaintiffs. There is no attorney-client privilege when a communication is relevant to the lawyer’s act of referring the client for treatment by a health care provider.
• Medical costs must be real. If the injured party has health care insurance, the amount paid by insurance should be explained and damages should not be based on unsupported medical estimates.
• Letters of protection. All letters of protection, would be divulged in the personal injury or wrongful death lawsuit proceedings. Doctors’ bills would have to be itemized and must include procedure codes where possible.
• Bad-faith claims. Mere negligence would not be sufficient to sustain a bad-faith action. It requires a good faith effort for a claimant to furnish information.

As a result, plaintiffs’ attorneys have been filing lawsuits in the thousands prior to the July 1st effective date.

-Information provided by BKS Partners, 3/29/2023

Click Here for HB 873 Bill

Resources and more information:

https://www.insurancejournal.com/

https://www.flsenate.gov/

February 2023 Activity Report Overview

Lawmakers convened in Tallahassee last month for the sixth and seventh interim committee weeks. Legislator’s then headed back to their districts for one week at home before Session officially begins on March 7th . Legislators will begin Session with 7 bills in the Senate and 1 bill in the House ready to be heard by their full chambers on second reading. While this number is slightly lower than in previous years, it’s important to note that several key pieces of legislation has already passed during the two Special Sessions. One trend we are seeing is an increase in larger ‘package’ bills, which results in fewer bills passing overall. HB 837, a tort reform bill, will be heard in its first committee today. Last week, the Governor and legislative leadership joined together to announce the package, which aims to reduce the number of suits and damages that businesses face in frivolous lawsuits. Governor DeSantis unveiled further immigration policy plans this week. His proposed legislative package would include, among other provisions, adopting more stringent hiring protocols, increasing penalties for illegal immigration, preventing local governments from issuing IDs to undocumented immigrants, and preventing undocumented students who entered the country as children from receiving in-state tuition rates. The Universal School voucher bill gained traction this week. HB 1 passed through its second committee, while its companion bill, filed by Senator Corey Simon, passed its first committee. Legislation that allows people to carry concealed guns in Florida without a permit began moving through the Senate this week. The bill, SB 150, filed by Tampa Senator Collins, also includes several provisions to bolster school security. Two of Senate President Passidomo’s priorities have passed their final committees and are ready for the Senate floor. This includes SB 102, the ‘Live Local act’ which expands affordable housing funding, programs, and prevents local governments from imposing rent controls while allowing them to increase the percentage of property tax breaks given to landlords proportional to the affordable housing units they offer. Governor DeSantis also announced his plan to spend $205 million on opioid and substance abuse treatment and prevention programs. The funding comes from a settlement in a lawsuit against opioid manufacturers.

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